Thursday price action attempts some gains: Brooks

Brooks Price Action Analysis for Thursday, Jan. 30

Trend from the first bar bear, opening reversal, wedge top, lower high major trend reversal

Thursday, January 30, 2014

Bar 1 - Gap up near top of 3 day trading range, small bar, tails, sellers at the high of the bar and probably scaling in higher buyers at the low of the bar and probably scaling in lower. Trading range so gap should close

Bar 2 - Trend from the first bar bear, sellers at the high of the bar and probably scaling in higher 1 so probably sellers below or signal bar 2 and then close the gap above high of yesterday

Bar 4 - Two legged pullback in a bull move but bear body so sellers at the high of the bar and probably scaling in higher

Bar 5 - Breakout pullback sell or short but swing only since low probability at bottom of weak channel

Bar 6 - Micro double bottom but no bull bars today so sellers at the high of the bar and probably scaling in higher

Bar 7 - Strong outside up bar but top of 4 bar tight trading range so sideways more likely.

Bar 8 - Breakout pullback sell or short but bottom of weak channel so buyers at the low of the bar and probably scaling in lower

Bar 15 - Lower high major trend reversal, wedge 8 12 but 6 consecutive bull bars, probably always in long and buyers at the low of the bar and probably scaling in lower, swing stop below 10. Trading range day likely. Low probability sell or short

Bar 17 - Breakout pullback buy or long but doji, wedge top, so probably sellers at the high of the bar and probably scaling in higher for two legs down. Probably always in long, stop below 10, but trading range day likely

Bar 19 - Breakout pullback sell or short for two legs down but small trading range day and better to enter with limit order orders, buying in lower 3rd below bars and selling in upper third above bars. Always in long, buyers at the low of the bar and probably scaling in lower, but tight trading range, bad for scalping with stop entries unless using swing stop